Is Your “Geeky” Smart Home Actually Insured? A Cybersecurity Checklist

On July 13, “Embrace Your Geekness Day,” we celebrate the passion for technology that makes our homes more efficient, convenient, and—let’s be honest—fun. But as your home becomes smarter, it also becomes a larger target. From Wi-Fi-enabled refrigerators to advanced security cameras, the “Internet of Things” (IoT) has brought the digital world into your living room.

For the insurance industry, this shift presents a new category of risk. If your smart lock is hacked and someone gains entry, or if your smart HVAC is “bricked” by a malicious virus, does your standard homeowners policy cover the loss?

The “Cyber” Coverage Gap

Most traditional homeowners insurance policies are designed to cover “perils” like fire, theft, and storm damage. They are not designed to cover the nuances of a cyber-attack. If a hacker gains remote access to your smart home and causes physical damage (like forcing your smart oven to overheat or flooding the home via a smart-sprinkler system), you may find yourself in a gray area regarding coverage.

Proactive Steps for the Tech-Savvy Homeowner

• Network Isolation: Keep your smart devices on a “guest” Wi-Fi network, completely separate from the network you use for banking or personal data.
• Firmware Vigilance: Just like your computer, smart devices need updates. Many “geeky” smart devices are left vulnerable because owners never update the firmware.
• Review Policy Endorsements: Talk to your agent about adding “Cyber Liability” or “Identity Theft” endorsements to your homeowners policy. These can sometimes be extended to cover hardware failure resulting from a cyber event.

Embracing your inner “geek” is a great way to improve your quality of life, but make sure your home’s security architecture is just as advanced as the gadgets you’re installing.